Correlation Between Coin Citadel and First BITCoin

Can any of the company-specific risk be diversified away by investing in both Coin Citadel and First BITCoin at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Coin Citadel and First BITCoin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Coin Citadel and First BITCoin Capital, you can compare the effects of market volatilities on Coin Citadel and First BITCoin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Coin Citadel with a short position of First BITCoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coin Citadel and First BITCoin.

Diversification Opportunities for Coin Citadel and First BITCoin

1.0

Correlation Coefficient

Coin Citadel  First BITCoin

No risk reduction

The 3 months correlation between Coin and First is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Coin Citadel and First BITCoin Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First BITCoin Capital and Coin Citadel is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Coin Citadel are associated (or correlated) with First BITCoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First BITCoin Capital has no effect on the direction of Coin Citadel i.e., Coin Citadel and First BITCoin go up and down completely randomly.

Pair Corralation between Coin Citadel and First BITCoin

If you would invest  0.01  in First BITCoin Capital on July 2, 2025 and sell it today you would lose  0.00  from holding First BITCoin Capital or give up 0.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Coin Citadel  vs.  First BITCoin Capital

Coin Citadel

Risk-Adjusted Performance

Weakest

Over the last 90 days Coin Citadel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Coin Citadel is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

First BITCoin Capital

Risk-Adjusted Performance

Weakest

Over the last 90 days First BITCoin Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, First BITCoin is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Coin Citadel and First BITCoin

The main advantage of trading using opposite Coin Citadel and First BITCoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coin Citadel position performs unexpectedly, First BITCoin can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in First BITCoin will offset losses from the drop in First BITCoin's long position.

The idea behind Coin Citadel and First BITCoin Capital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.